Fazzaco Weekly Digest: FX Brokers with New Licenses in 2023; 31 Brokers' Client Profitability in January; MT5 Adds Integrated Payments

Prop trading has garnered increasing attention from the industry, with OANDA, a well-known online broker, launching its Labs Trader Program and entering the field. Fazzaco's article "Proprietary Trading in 2023: Industry Leaders, Strategic Alliances, and Market Dynamics" provides a comprehensive overview of key activities in the prop trading sector over the past year, offering insights into its development trend.

Obtaining a license is crucial for brokers looking to expand their business. According to Fazzaco's report on the licensing progress of 18 forex brokers in 2023, nearly 60% of them opted to secure new licenses in the Middle East and Africa (MEA). This reflects the brokers' optimism regarding the growth potential of the MEA market. Last week, Doo Group also joined this trend by expanding into the Middle East market with the opening of two new offices in Dubai.

Furthermore, IG Group and StoneX​ released their latest financial reports. Last week's reports also cover recent management changes in prominent companies such as Forex.com, INFINOX​, Match-Trade Technologies, Kraken, Deutsche Bank​, and TradingView​.

MetaQuotes, the leader in trading software, continues to enhance the performance of its platform. The latest version of its MT5 has introduced an integrated payment service, streamlining the customer onboarding process. 

Here are the related details, as well as some of the most read forex, fintech, and crypto news pieces and articles from Fazzaco over the last week.

1. FX Brokers with New Licenses in 2023: Capture the Market Potential and Advance on MEA!

In 2023, the global foreign exchange (FX) market size reached USD805 billion, according to IMARC Group. The market size is expected to reach USD1,466 billion by 2032, representing a growth rate (CAGR) of 6.92% during 2024-2032. For business expansion, licenses are very important for FX brokers, which is undeniable. Obtaining a FX license can prove the legality and credibility of a broker, increase customer trust, and enable them to tap into new markets, thus expanding their market share and revenue.

In 2023, Fazzaco covered the stories of 18 FX brokers which secured a total of 20 new licenses around the globe. In this article let's explore where these brokers acquired new licenses, and what market trends they reveal last year.

2. Fazzaco Reports: Client Account Profit/Loss Ratio of 31 Brokers in January 2024​

Fazzaco collected the data of profit/loss ratio of client accounts from 31 brokers in January 2023. The brokers we have in this month-on-month comparison remained the same as last month.

Among the 31 brokers this month, an average of 27.62% of client accounts achieved profits, while 72.38% of client accounts suffered losses. Compared with the average data in December 2023, the winning rate of client accounts increased by 0.45%.

3. Doo Group Enters Middle East Market with Two New Offices in Dubai

Doo Group, a large financial services group with financial technology at its core, today announced the opening of its two new offices in Dubai, UAE, and has entered the Middle East market, representing a significant move in its expansion in the MENA region.

According to the official press release, the Group's new offices are strategically located in two prime areas. The first office is at Emaar Square Building 1 in Downtown Dubai, UAE, serving as a key strategic base and global operations hub for Doo Group in the Middle East. Situated near iconic landmarks like The Burj Khalifa and The Dubai Mall, this office will offer excellent connectivity for international business transactions.

4. Proprietary Trading in 2023: Industry Leaders, Strategic Alliances, and Market Dynamics​

Moving with the tide and never ceasing innovation, a new chapter unfolds in the realm of proprietary trading in 2023. From top-level management changes to brand collaborations, from market rule adjustments to technological innovations, each step imparts new drive and direction to the proprietary trading market.

Here, Fazzaco delves into the latest industry trends, taking stock of important initiatives by proprietary trading firms and brokers/fintech involved in this field, to gain insights into the industry's development and future trends.

5. MetaTrader 5 Adds Integrated Payments for Streamlined Customer Onboarding​

MetaQuotes announced yesterday that its MetaTrader 5 (MT5) has introduced an integrated payments service in the latest version, allowing traders to replenish their accounts directly within the trading platform. The newly added service not only enhances platform convenience but also simplifies the entire customer onboarding process, which will assist brokerage firms in gaining a competitive edge in the market.

The integrated payment enables traders to fund their accounts through bank transfers, cards, or online payment systems directly within the trading platform, eliminating the need for additional registration steps. This simplifies traders' trading processes and accelerates onboarding, consequently improving customer conversion and success rates.

6. William Klippel Rejoins Forex.com to Lead Strategic Partnerships and Alliances

Fazzaco learned that William Klippel, a leader with two decades of sales, operations and product management experience in the fintech industry, has rejoined FOREX.com, a trading name of GAIN Capital- FOREX.com Canada Limited, a wholly-owned retail Forex business of StoneX Group Inc., to head strategic partnerships and alliances, out of New York.

William had already served FOREX.com for more than fourteen years. He first joined the company in 2005 as Forex Specialist, then was elevated to multiple senior sale roles, including Sales Manager, International Markets, and Director of Sales, EMEA. In October 2011, he started to lead the development of GTX, a proprietary Electronic Communications Network (ECN), into a robust prime-of-prime brokerage solution. In April 2018, William became Head of Direct Market Access (DMA) Product & Commercial Proposition, and resigned from the role in June 2020.

7. IG Group Posts £472.6 Million Revenue for H1 FY24​

IG Group, a global online trading company providing CFDs and Forex, today released its financial results for the first half of its fiscal year 2024 ended November 30, 2023 (H1 FY24), revealing a decline in total revenue for the period.

During the six month, the Group registered a total revenue of £472.6 million, dropping 9% compared to £519.1 million in H1 FY23. Net trading revenue came in at £402.4 million, a decrease of 19% compared to £494.9 million in the year-ago period. However, the net interesting income jumped 190% from £24.2 million to £70.2 million on a year-on-year basis (YoY).